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Liquidity Services

The National Credit Union Administration (NCUA) enacted changes to the Central Liquidity Facility (CLF) in relation to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CLF is a mixed ownership Government corporation within the NCUA owned by its member credit unions and managed by the NCUA Board. The purpose of the CLF is to act as a credit union system contingent liquidity source to improve the general financial stability by providing member credit unions with a federal backstop source of loans to meet their liquidity needs.

These temporary statutory and regulatory changes provided the authority for Corporate Central to become an Agent Member of the CLF for a subset of our members. As a result, all Full Members of Corporate Central now have access to the CLF for any emergency funding needs that may arise for your credit union between now and the end of 2020.

As your agent, we will be your liaison to the CLF to provide services related to the CLF, such as: working with you on required paperwork, managing the collateral pledging and administration process, assessing and submitting liquidity need requests, and facilitating any necessary loan advances.

To prepare your credit union to have access to the CLF in a time of need, please review the Liquidity Need Loan Application, then complete, sign, and return to Corporate Central. The document allows for electronic signature, which is the preferred method. While there is not a requirement for this document to be on file until you have a need to access the CLF, we strongly recommend that you get the document on file now to allow for expedited access to the CLF if or when you need it.

The changes allowing Corporate Central to be an Agent Member of the CLF are temporary and currently set to expire on December 31, 2020. While the NCUA has indicated its desire to extend the expiration of these changes, or even make them permanent, it is still unknown if or when that may occur.

Learn more about the CLF here. If you have any questions, please feel free to contact us.

Line of Credit

Corporate Central will establish a Line of Credit for your credit union in an amount deemed appropriate and agreed upon by your credit union and Corporate Central.  Once the limit is determined you may access a variety of liquidity sources that we offer.

Settlement Loans

A Settlement Loan is established to ensure the availability of funds to cover all settlement transactions on any given day.  If at any time funds are not sufficient to cover daily settlement transactions and/or fees, Corporate Central may draw on your Line of Credit and advance a settlement loan in an amount necessary to meet the predetermined minimum deposit balance that is required to open a settlement account.  Depending on which type of settlement account your credit union establishes, a settlement loan can be advanced manually or automatically at or before the end of the business day.

The interest rate is declared by approximately 3:00pm CT each business day.  The interest rate for a non-business day is the same as the previous business day.

Interest Payment: Interest on a Settlement Loan is due as funds become available.

Principal Payment: After interest is collected, principal is due as funds become available.

Interest Calculations: Interest is calculated based on an actual (365-day) basis.

Fixed-Rate Term Loans

Fixed-Rate Term Loans with maturities ranging from less than one-month to seven-years are available to members with an approved Line of Credit.  Members have the option of choosing bullet maturities (100% principal due at maturity) or amortizing the principal and interest payments over the life of the loan with payments due monthly, quarterly, semi-annually or at maturity.

Interest Rate: The interest rate is disclosed for each term loan on the agreement and remains fixed for the life of the loan.

Interest Payment: Interest is collected monthly, quarterly, semi-annually, annually or at maturity.  Interest payment terms are disclosed on each specific Fixed-Rate Term Loan agreement.

Interest Calculations: Interest is calculated based on an actual (365-day) basis.

Variable-Rate Term Loans

Variable-Rate Term Loans with maturities ranging from three-months to seven-years are available to members with an approved Line of Credit.  Members have the option of choosing a bullet maturity (100% principal due at maturity) or amortizing the payments over the life of the loan with payments due monthly, quarterly, semi-annually or at maturity.

Interest Rate: The interest rate index is disclosed for each term loan on a term note and loan agreement and will be reset periodically, at a spread to the stated index.  Indexes include, but are not limited to, the following:  Prime Lending Rate, One-Month LIBOR, or Three-Month LIBOR.  Loans indexed to LIBOR are reset monthly or quarterly on the 25th of the month.

Interest Payment: Interest is collected monthly, quarterly, semi-annually or at maturity.  Whichever method is used will be disclosed on each specific Variable-Rate Term Loan agreement.

Interest Calculations: Interest is calculated based on an actual (365-day) basis.

Variable-Rate Demand Loans

The Variable-Rate Demand Loan is a master loan under which a credit union may borrow not less than $1,000,000 or multiples thereof.  The maximum a credit union may advance using this liquidity facility shall be predetermined and disclosed on the Variable-Rate Demand Loan note and loan agreement.  The Variable-Rate Demand Loan can be executed on any Tuesday on which Corporate Central is open for business (if a Tuesday falls on a non-business day, the rate will be set the next business day).  When a credit union wishes to borrow funds, the credit union will give notice to Corporate Central by phone on the day that the credit union wishes to incur the loan.  At any time, Corporate Central may demand repayment of part or all the principal of the loan outstanding on any day the credit union is open for business.  Corporate Central shall give notice by phone and payment will be due in full by 9:00am CT the next business day.  The credit union shall have the right to repay some, or all, of the principal owed on any Tuesday on which Corporate Central is open for business, provided the remaining principal balance is at least the minimum required.  The credit union shall give notice of payment by phone no later than 4:00pm CT, on the repayment day.

Interest Rate: The interest rate is set by Corporate Central at our discretion.  Such rate will be set, announced and posted every Tuesday and confirmed to the credit union in a monthly report.  The rate is declared by approximately 9:30am CT on Tuesdays.

Interest Payment: Interest is paid and posted on the last business day of the month.  All accrued interest is due at any time the loan balance is paid in full.

Interest Calculations: Interest is calculated on the basis of a 360-day year.

View Current Rates

Demand for federal sources of liquidity is required for some credit unions due to NCUA’s proposed rule on Maintaining Access to Emergency Liquidity (12 CFR Part 741, published December 2011, updated July 2012). Corporate Central offers access to the Federal Reserve Bank's (FRB) Discount Window without establishing a direct relationship with the Fed.  Once enrolled, funds can be requested through the FRB for swift deposit in the members Corporate Central account.

Public agencies and businesses can provide your credit union with valuable sources of deposits. Those deposits often require supplemental collateral because the amounts exceed NCUA coverage. Corporate Central can provide a useful alternative to pledging securities to collateralize those deposits. A valuable and popular solution is to utilize a low-cost standby Letter of Credit provided by Corporate Central.

Learn More

Loan Participations

The loan participations program is an effective balance sheet tool so that you can better manage your credit union’s liquidity. Our online loan participation platform is suitable for any size credit union, loan, or deal volume and streamlines the process from origination to maturity. Whether your credit union is looking to buy or sell loans, the platform allows you to set parameters that match your credit union with the appropriate buyer or seller.

Buying and Selling Loans

  • Unlimited number of user registrations available at no charge
  • Technical support readily available
  • Transparency across all facets that allows for competitive pricing and strategy
  • Proprietary market data used to market to potential buyers
  • Review loans simultaneously with other users to significantly reduce time and expense on due diligence
  • Free standard participation agreement
  • Automated monthly reports and analytics tailored to your key performance metrics transmitted through cloud-based, encrypted data storage
  • Compliant with GAAP accounting standards, NCUA requirements, and CECL compliance

Benefits

Our fully integrated, online loan platform offers streamlined processes, robust reporting and analytics, and best-in-class compliance to help your credit union grow its income, reduce your risk, and provide more opportunities for growth.

Our loan participations platform gives your credit union immediate access to hundreds of loan offers with no exclusivity, no fees, and no minimum purchase requirements – all while receiving consolidated monthly reporting of every purchase you make.

Learn More

QuantyPhi is a wholly-owned CUSO of Corporate Central Credit Union

Non-Member CD with SimpliCD

What is SimpliCD issuing?
SimpliCD issuing, part of the SimpliCD program managed by Primary Financial Company, LLC, refers to the issuing of federally-insured CDs by your credit union. When issuing through this program, your offerings are available to a nationwide market of credit union investors. Along with ease of consolidated reporting, SimpliCD issuing allows your credit union to raise funds quickly and easily.

Why is SimpliCD issuing important?
SimpliCD offers credit unions a simple fundraising solution. With SimpliCD, credit union managers get easy access to purchasers. They get convenient, one-location recordkeeping and settlement of funds consolidation. SimpliCD makes cash flow management less stressful and less time-consuming.

Who does SimpliCD issuing help?
SimpliCD issuing helps CEOs and CFOs manage cash flow and recordkeeping with ease. The cash flow management benefits of SimpliCD issuing save credit union leaders time, reduce stress, and make the job of managing cash flow simpler.

Contact your Financial Strategist to get the current SimpliCD rates.

Learn More 

QuantyPhi is a wholly-owned CUSO of Corporate Central Credit Union

Is your credit union looking to attract Gen Z members? Do you need a competitive student lending solution to grow your younger membership base? Our turnkey solution enables credit unions to expand their product line and generate fee income. It is offered through Sallie Mae, the nation's leading saving-and-paying-for-college provider. As members obtain student loans, the credit union receives payments for the referrals. Meanwhile, your credit union's website does the majority of the work. And it's free!

Sallie Mae offers a suite of educational loans, created specifically for the needs of undergraduate and graduate students, and their parents:

  • Smart Option Student Loan® for Undergraduate Students
  • Graduate School Loan
  • MBA Loan
  • Medical School Loan
  • Dental School Loan
  • Graduate School Loan for Health Professions
  • Law School Loan
  • Parent Loan

Student loans will help your credit union retain and grow member relationships by offering private student loans as a compliment to student checking, debit cards, online banking, auto loans, and your other student-friendly financial products.

Benefits to Your Members

  • Makes money available that students need for college
  • Offers the choice of competitive fixed or variable interest rates
  • Lets members choose the repayment option that fits their needs
  • Allows members to enroll in auto debit, with the potential to earn interest rate reduction
  • Quick, easy online applications
  • Assists your members, when needed, with Sallie Mae’s dedicated customer service and technical assistance centers
  • Members can manage their loans online, 24/7

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Our Family of CUSOs

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Corporate Central Credit Union
6262 South Lowell Place, Muskego, WI 53150
Phone: (800) 242-4747 | Fax: (414) 427-3700
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